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kow [346]
3 years ago
8

Based on what you learned in The Power of the Informal Economy video, what is the informal economy and how many people in the wo

rld's economy work in "System D"? Do you see evidence of an informal economy in the United States? Why or why not?
Business
1 answer:
frosja888 [35]3 years ago
5 0

Answer:

1.8 billion people are employed in System D.

Explanation:

System D is a large informal economy. It is an open economic arena where everything is available. Though it is very large, it doesn’t include two-thirds of the workers in the world. The people who are a part of System D are about 1.8 billion people in the world. The economy is worth $10 trillion per year.

In informal economy varied set of economic activities happen. The enterprises, jobs and workers are not regulated or protected by the state. It is basically mean self-employment in small enterprises.

Yes, United States has an informal economy. Government does not tax or monitor the black market and market of illegal drugs.

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Mason Automotive is an automotive parts company that sells car parts and provides car service to customers. This is Mason's firs
Vera_Pavlovna [14]

Answer:

Mason Automotive sells 10,000,000 shares at $5 par for $15 on January 1st, 2019.  

Dr Cash 150,000,000

    Cr Common stock 50,000,000

    Cr Additional paid in capital 100,000,000

Ed Mason, the CEO, hires 4,000 employees, whom will receive a combined salary of $6.5 Million on a monthly basis. The employees started on January 1st and will be paid for the month of January on February 5th. Employee's withholdings are as follows: 10% for federal income taxes 5% for state income taxes and 7% for FICA. Record the necessary entry as of January 1st, 2019.          

No journal entry required

Adjusting entry:

January 31, 2019, wages expense

Dr Wages expense 6,500,000

Dr FICA taxes expense 455,000

    Cr Federal income taxes withheld payable 650,000

    Cr State income taxes withheld payable 325,000

    Cr FICA taxes withheld payable 455,000

    Cr FICA taxes payable 455,000

    Cr Wages payable 5,070,000

On January 1st, Mason Automotive receives $70 Million advance payment from a customer, Highland Inc., to manufacture 7,000 cars.        

Dr Cash 70,000,000

    Cr Deferred revenue 70,000,000

Adjusting entry:

January 31, 2019, 5,000 cars were finished and delivered

Dr Deferred revenue 35,000,000

    Cr Sales revenue 35,000,000

Mason Automotive issues a bond payable on January 1st, 2019 with a face value of $500 Million at 98. The bond will have a useful life of 10 years with an interest payment of 8% (Annual Percentage Rate) due at the end of the month. Record the necessary journal entry as of January 1st,  2019.

Dr Cash 490,000,000

Dr Discount on bonds payable 10,000,000

    Cr Bonds payable 10,000,000

(Note: When considering the amortization of the discount or premium, assume the straight line method is used).  

Adjusting entry        

January 31, 2019, interest expense

Dr interest expense 3,416,666

    Cr Discount on bonds payable 83,333

    Cr Interest payable 3,333,333

Mason Automotive purchased $6 Million dollars worth of supplies on account on January 2nd, 2019.      

Dr Supplies 6,000,000

    Cr Accounts payable 6,000,000

Adjusting entry

January 31, 2019, supplies expense

Dr Supplies expense 3,500,000

    Cr Supplies 3,500,000    

On January 2nd, Mason Automotive shipped an order to Panther Paws Corporation. The shipping terms were FOB shipping point and the value of the order was $95 Million and the inventory cost was $55 Million. Assume that this sale was made on account.          Dr Accounts receivable 95,000,000

    Cr Sales revenue 95,000,000

Dr Cost of goods sold 55,000,000

    Cr Inventory 55,000,000

Adjusting entry:

January 31, 2019, allowance for doubtful accounts (3%)

Dr Bad debt expense 2,850,000

    Cr Allowance for doubtful accounts 2,850,000

Mason Automotive purchased $150 Million dollars worth of inventory on January 2nd, 2019. $80 Million was paid with cash with the remaining balance on account. Mason notes that it will use a perpetual inventory system to track inventory.  

Dr Inventory 150,000,000

    Cr Cash 80,000,000

    Cr Accounts payable 70,000,000      

Mason Automotive buys a patent from Apple for $20 Million on January 3rd, 2019. The patent has a legal life of 20 years and the useful life was the same. Record the necessary entry as of January 3rd, 2019. Assume the patent was purchased using cash.          Dr Patent 20,000,000

    Cr Cash 20,000,000

Adjusting entry:

January 31, 2019, patent amortization expense

Dr Patent amortization expense 83,333

    Cr Patent 83,333

Mason Automotive pre-pays for Rent Expense for the next year of $12 Million and Insurance Expense of $3.7 Million on January 3rd, 2019.  

Dr Prepaid rent 12,000,000

Dr Prepaid insurance 3,700,000

    Cr Cash 15,700,000

Adjusting entries:

January 31, 2019, rent expense

Dr Rent expense 1,000,000

    Cr Prepaid rent 1,000,000

January 31, 2019, insurance expense

Dr Insurance expense 308,333

    Cr Prepaid insurance 308,333        

Mason Automotive purchases fixed assets of $100 Million that will have a useful life of 10 years and a salvage value of $20 million on January 4th, 2019. $20 million was paid with cash with the remaining balance on account. These assets are depreciated using the straight-line method.  

Dr Fixed assets 100,000,000

    Cr Cash 20,000,000

    Cr Accounts payable 80,000,000

Adjusting entry:

January 31, 2019, depreciation expense  

Dr Depreciation expense 666,667  

    Cr Accumulated depreciation - fixed assets 666,667    

On January 20th, Mason Automotive decides to purchase 500,000 shares of Treasury stock at $35 per share.

Dr Treasury stock 17,500,000

    Cr Cash 17,500,000

3 0
3 years ago
On December 21, 2017, Novak Company provided you with the following information regarding its equity investments.
vodomira [7]

Answer:

(a)

Dr Unrealized Holding Gain or Loss -Equity $1,410

Cr Fair Value Adjustment $1,410

(b)

Dr Cash $9,410

Dr Loss on Sale of Investment $590

Cr Equity Investment $10,000

(c)

Dr Fair Value Adjustment $1,120

Cr Unrealized Holding Gain or Loss-Equity $1,120

Explanation:

(a) Preparation of the adjusting journal entry needed on December 31, 2017.

Dr Unrealized Holding Gain or Loss -Equity $1,410

Cr Fair Value Adjustment $1,410

(To Adjust to Fair Value for 2017)

(b) Preparation of the journal entry to record the sale of the Colorado Co. stock during 2018.

Dr Cash $9,410

Dr Loss on Sale of Investment $590

(20,200- 20,790)

Cr Equity Investment $10,000

($9,410+$590)

(To Record Sale of Stock)

(c)Preparation of the adjusting journal entry needed on December 31, 2018.

Dr Fair Value Adjustment $1,120

Cr Unrealized Holding Gain or Loss-Equity $1,120

(To Adjust to Fair Value for 2018)

Investments Amortized Costs, Fair Value , Unrealized Gain (Loss)

Clemson Corp. stock

$20,200 $19,410 ($790)

Buffaloes Co. stock

$20,200 $20,700 $500

$40,400 $40,110 ($290)

Previous Fair Value Adjustment (Credit)

$1,410

Fair Value Adjustment (Debit)$1,120

7 0
3 years ago
Television channel operating profits vary from as high as 45 to 55 percent at MTV and Nickelodeon down to 12 to 18 percent at NB
Xelga [282]

Answer:

Explanation:

MTV and cable channels can have higher operating profits largely because they have lower costs and can reach very specific demographic groups quite easily. MTV and Nickleodeon are typically not paying high and uncertain prices for their shows. They air mainly reruns of proven shows or relatively low-cost reality shows. This means that they have more cost certainty.

In addition, they have very clear target audiences where the networks do not. MTV is clearly aimed at teens and young adults while Nickleodeon is a kids' channel. Advertisers are attracted to channels with such clear demographics.

As far as Porter's five forces go, the most likely reason for the higher cable profits would have to do with brand equity and the lower propensity among buyers to substitute.

These would mean that cable channels have a lower threat of new competition and a lower threat of substitute products. It is true that it is easy for a new cable channel to be created, but it is much harder for such a channel to get the name recognition and brand equity that MTV and Nickleodeon have.

4 0
3 years ago
Allocative efficiency is concerned with :_________.
Digiron [165]

A) Producing the combination of goods most desired by society

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3 years ago
A popular television program called the swan aimed to turn less visually appealing people into more socially acceptable ones by
Sati [7]
<span>This is an example of, "medicalization and the social construction of health and illness".

</span><span>Medicalization is examined from a sociologic point of view regarding the part and energy of experts, patients, and enterprises, and furthermore for its suggestions for ordinary individuals whose self-character and life choices may rely upon the overall ideas of health and illness.
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3 years ago
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